By Stephen Nakrosis

Moody’s Investors Service said on Friday that it is increasing its outlook on Malta to stable from negative, and affirmed the nation’s long-term issuer ratings at A2.
Moody’s said that Malta’s economic diversification was one of the main drivers for the improved outlook.  “Malta’s economic diversification underpins its resilient growth prospects despite the expected global slowdown,” according to Moody’s.

The agency also said that it expects Malta’s public finances to continue gradually consolidating despite the energy crisis.  “In the context of the military conflict in Ukraine, it is important to stress that Malta has no direct dependence on energy from Russia,” said Moody’s.
The agency also said that high energy prices and rising prices for food and other goods and services are negatively affecting household income and corporate margins in Malta, ” although to a lesser extent than in most other European countries.”
Another Moody’s cited was the removal of Malta from the Financial Action Task Force’s gray list, which “reflects the authorities’ commitment to institutional reforms,” ​​said the ratings agency.
Write to Stephen Nakrosis at [email protected]